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  • FIRST POST
    • R1chP
    • By R1chP 21st Sep 18, 3:09 PM
    • 20Posts
    • 15Thanks
    R1chP
    My Great Plan C.
    • #1
    • 21st Sep 18, 3:09 PM
    My Great Plan C. 21st Sep 18 at 3:09 PM
    Hi folks, long time lurker starting my MFW diary to motivate myself if this plan fails it will be Plan D, overpay as much as I can to clear mortgage and reduce hours or go part time by the time I'm 60.

    I'm 57, single bloke with no dependants.

    Plan A was to walk out of job and force myself to look for another (but don't want to put my house at risk).

    Plan B is bite the bullet and carry on overpaying 100 a month.

    Plan C is cash in an old private pension to clear mortgage and go on a 3 day week.
    I have an appointment with Pension wise next week to see if I can draw down some money over two tax years and avoid 40% tax hit and be mortgage free by April 2019.

    Outstanding mortgage is 38k and 14 years left to pay.

    I started a thread in "Pensions section" with a bit more detail.

    https://forums.moneysavingexpert.com/showthread.php?t=5896005


    My "to do list" before I reduce hours is:

    Find an IFA.

    New Sofa.

    Pay off mortgage.

    Decorate and carpet Living Room and Hall/Stairs.

    Replace 2 garden sheds with a workshop shed.

    Update my Will.

    Bye for now.
    Last edited by R1chP; 21-11-2018 at 2:28 PM.
Page 1
    • R1chP
    • By R1chP 25th Sep 18, 3:20 PM
    • 20 Posts
    • 15 Thanks
    R1chP
    • #2
    • 25th Sep 18, 3:20 PM
    • #2
    • 25th Sep 18, 3:20 PM
    A reminder to myself:

    According to the Overpayment Calculator I will have saved 10k in interest by over paying 100 a month.
    16k saved with Plan C.
    • doingitanyway
    • By doingitanyway 30th Sep 18, 1:32 PM
    • 4,229 Posts
    • 25,585 Thanks
    doingitanyway
    • #3
    • 30th Sep 18, 1:32 PM
    • #3
    • 30th Sep 18, 1:32 PM
    Wishing you well. I've just gone down to a 4 day week and it makes a big difference
    I like your plan C. Life is short. Go for it.
    Target by end of Aug goal: 500/4000
    Car costs savings: 275
    • R1chP
    • By R1chP 9th Oct 18, 8:49 PM
    • 20 Posts
    • 15 Thanks
    R1chP
    • #4
    • 9th Oct 18, 8:49 PM
    • #4
    • 9th Oct 18, 8:49 PM
    Thanks doingitanyway.

    Sofa ordered.

    Booked a free hour appointment with a local IFA.
    • BBH123
    • By BBH123 10th Oct 18, 8:22 AM
    • 957 Posts
    • 2,075 Thanks
    BBH123
    • #5
    • 10th Oct 18, 8:22 AM
    • #5
    • 10th Oct 18, 8:22 AM
    Good luck, I am in a similar situation in that I was hoping to start a job that took me neatly into paying off the mortgage and retirement but 2 years in and I hate it.


    I am 4 yrs away from my pension and would be happy with a nicer job so am looking. If I find the next one is pants aswell I will look to sell an asset to tide me over until my pension matures.


    I plan to do a lot of things in retirement and selling assets is not what I want to do nor is using my pension to clear the mortgage tbh but neither is staying in a horrible job part of the plan either.
    Save 6k in 2019 challenge #44
    1577 / 6000
    • Escapar2020
    • By Escapar2020 28th Oct 18, 8:12 PM
    • 92 Posts
    • 171 Thanks
    Escapar2020
    • #6
    • 28th Oct 18, 8:12 PM
    • #6
    • 28th Oct 18, 8:12 PM
    Exciting times, enjoy the journey!
    • R1chP
    • By R1chP 21st Nov 18, 3:26 PM
    • 20 Posts
    • 15 Thanks
    R1chP
    • #7
    • 21st Nov 18, 3:26 PM
    • #7
    • 21st Nov 18, 3:26 PM
    Seen IFA.
    The advice is pay off chunk of mortgage with the tax free portion of old pension and most of my savings leaving about 10k to pay off over a year or two.
    He will set up a new flexi draw down pension with what is left. So I will still have an emergency/shed fund.
    • beanielou
    • By beanielou 21st Nov 18, 5:57 PM
    • 62,688 Posts
    • 272,314 Thanks
    beanielou
    • #8
    • 21st Nov 18, 5:57 PM
    • #8
    • 21st Nov 18, 5:57 PM
    Seen IFA.
    The advice is pay off chunk of mortgage with the tax free portion of old pension and most of my savings leaving about 10k to pay off over a year or two.
    He will set up a new flexi draw down pension with what is left. So I will still have an emergency/shed fund.
    Originally posted by R1chP
    Sounds ok
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 12 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. ***Be the difference.***
    • R1chP
    • By R1chP 12th Apr 19, 8:19 PM
    • 20 Posts
    • 15 Thanks
    R1chP
    • #9
    • 12th Apr 19, 8:19 PM
    Update.
    • #9
    • 12th Apr 19, 8:19 PM
    Flexi-Access Drawdown pension has now been set up by IFA.

    19k tax free lump sum transferred to my bank account today, so I rang up The Halifax and made a 22k mortgage overpayment bringing my outstanding mortgage to 14k.

    I've transferred 8k from NS&I Direct ISA back to my Current Account to use as overpayment when it appears, so by Monday my mortgage should be down to 6k .

    Hopefully mortgage free by this time next year.
    • R1chP
    • By R1chP 15th Apr 19, 3:24 PM
    • 20 Posts
    • 15 Thanks
    R1chP
    Paid the 8k off via online banking, despite the lady on the phone saying Friday's 22k payment would be instant, it still hasn't left my account yet.

    Can't wait to see my mortgage account updated. Fingers crossed until then.
    • upwards
    • By upwards 15th Apr 19, 6:28 PM
    • 41 Posts
    • 31 Thanks
    upwards
    bowser well done!
    • R1chP
    • By R1chP 16th Apr 19, 7:58 PM
    • 20 Posts
    • 15 Thanks
    R1chP
    Everything is OK, new balance is 6391.00.

    New shed ordered paid half, and paying the other half on 0% interest free credit. Can pay off the balance anytime without penalties.

    Six weeks until delivery and installation.
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